This is a Blog specially about Bitcoin, a cryptographic coin that I just found out and am extremely interested in it. Hoping to learn about the Bitcoin and hoping that you will learn along with me.

Saturday, 14 April 2012

Going into Bitcoin Mining

So we have our Electronic Wallet for Bitcoins, and given that the Bitcoin Faucet doesn't really give you much, actually just for playing around and if you need some more Bitcoins and are interested to explore mining some of the Bitcoins yourself, you will need to understand this.

You can see that the difficulty is 1577913, what does that mean for you. Difficulty times 2^32 (4,294,967,296) divides by your hash rates give you the average time to find a Bitcoin Block. Taking your Hash Rate as 1 Ghash/s which is not to be laughed at. 1,626,553 x 4,294,967,296 / 1,000,000,000 = 6,985,992 seconds = 80 days. It will take you 80 days to find a block of Bitcoins. At this moment, the number of coins in a block is 50 which is about US$250, meaning it takes you 80 days to earn $250, not to mention the electric bills and the costs of building a rig. There are two major methods, one is through building a rig using a mother board and GPUs, the other is using FPGA. GPU rigs are very power intensive and your power bills will be huge where FPGAs though aren't power intensive cost more than GPU rigs when you are buying them. So do you also need the patience to wait an average of 80 days? Not actually, there are mining pools which we will talk about later.